The California Court of Appeal issued an important decision clarifying that an employee cannot recover damages for a defamation claim that is derivative of a wrongful termination claim. Defamation causes of action are often alleged by employees in tandem with and related to an underlying discrimination or wrongful termination claim. The Court in Hearn v. Pac. Gas & Elec. Co., 108 Cal. App. 5th 301 (2025) held that in order for an employee to recover defamation damages, the defamatory conduct must be based on conduct other than the conduct giving rise to the termination.
Todd Hearn was a former Pacific Gas & Electric Company (“PG&E”) lineman. After an investigation into potential discrepancies in his time records, Hearn was suspended and ultimately terminated. The termination was based on investigative reports that collected witness statements and analyzed Hearn’s time records and GPS locations.
Hearn filed a civil complaint alleging claims for (1) retaliation for allegedly disclosing safety violations under Labor Code section 1102.5; (2) retaliation for allegedly lodging a bona fide complaint about unsafe working conditions under Labor Code section 6310; (3) wrongful termination in violation of public policy; and (4) defamation.
Ultimately, only Hearn’s claims for retaliation under Labor Code section 1102.5 and defamation went to a jury trial. The jury found PG&E not liable for the retaliation claim but did find PG&E liable for defamation. PG&E...
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